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Comp should start to amortize /dep when the assets is ready to use
or when its actually used ?
Clarify the matter w giving example sir plz
Depreciation starts from when it is ready to be used. So if it is ready on 1 October but not used until 1 November, the depreciation will start on the earlier date of 1 October.
Does tangible and intangible assets have different concept when come to depreciation? I mean based on above Tangible is depreciated when IT IS READY FOR USE NOT WHEN IT IS USED. For intangible assets, if say it has 10 years useful life, but cannot be used until 1 year later, it should be depreciated from next year over 9 years period?
It is the same for intangibles as it is for tangibles, the amortisation starts when it is available for use.